Block reward miner Northern Data weighs up $500M public offering

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One of Europe’s largest block reward mining companies is reported to be weighing up an initial public offering (IPO) in the United States, which could help raise as much as $500 million to fund the firm’s expansion.

German miner Northern Data is working with Swiss investment bank Credit Suisse on the plans, according to sources close to the matter, which would see the firm become the latest major block reward mining operator to go public worldwide.

The company is reported to be considering the sale of new shares later in 2021, with plans to boost its international profile as well as increasing the number of its shareholders. The firm already has high profile shareholders including crypto investor Mike Novogratz of Galaxy Digital, and investment firm Block.one.

Northern Data has been listed on Germany’s OTC exchange for several years, with its price surging more than 300% over the past year, fueled by speculation in its key digital currency markets.

The firm operates out of the outskirts of Frankfurt, running its mining data centers in areas of low energy cost. Its single largest facility is located in Texas, which is one of the largest mining rigs in the world, with a planned capacity of up to 1 gigawatt by the end of the year.

Both Northern Data and Credit Suisse have so far refused to comment on the reports, though sources close to the matter have shared details about the plans in development.

Credit Suisse has previous form in assisting mining firms with their IPOs, having previously been amongst the backers of the Canaan Creative IPO. However, after concerns were raised about order sufficiency in November 2019, Credit Suisse later pulled out of its involvement in the deal.

The news comes amid a resurgence in investment in digital currency and block reward mining, fueled by strong demand for digital currencies worldwide.

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”